Carbon tax rebates for small businesses will be tax free, Freeland says after complaint by association

The Canadian Federation of Independent Business says it had been told by the Finance Department that the rebate was taxable

OTTAWA — Finance Minister Chrystia Freeland says the Canada carbon rebate for small businesses will be tax-free.

In a statement posted to X late Tuesday, Freeland clarified the parameters of the program after an advocacy group for small business raised concerns that the rebate would be a taxable benefit.

Dan Kelly, president and CEO of the Canadian Federation of Independent Business, posted on X soon after that post that he had received a call from Freeland, who offered “assurance” that the rebate would be tax-free.